ByLawyers News and Updates

Retail lease disclosure – NSW

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The By Lawyers To do list precedent has been updated in the By Lawyers Leases (NSW) Guide to include a section on retail lease disclosure requirements of both the lessor and lessee.

New leases

At least seven days before a retail shop lease is entered into, a lessee must have been given a disclosure statement by the lessor. The maximum penalty for failing to comply is 50 penalty units.

If the disclosure statement is not given, is incomplete, or contains information that is materially false or misleading, the lessee may terminate the lease by notice in writing at any time within six months.

The lessor’s disclosure statement includes a lessee’s disclosure statement, allowing the lessee to set out representations made to the lessee. The Act requires the lessee to complete and give to the lessor this statement within seven days of receipt of the lessor’s disclosure statement. There is a penalty of 50 penalty units if this is not done, but there is no right for the lessor to rescind the lease.

Renewal

On renewal of a retail lease the lessor may provide an update together with a copy of the earlier disclosure statement, or a fresh one.

Assignment

If a lessee assigns a retail shop lease it is relieved from liability to pay money under the lease if it serves upon both the lessor and the assignee a copy of an assignor’s disclosure. This must be done at least seven days before the assignment.

Precedent update

The new section of the To Do list covers the time limits for retail lease disclosure in relation to:

  • new leases;
  • assignment; and
  • renewal of existing leases.

Thanks

This enhancement was the result of user feedback. At By Lawyers, we pride ourselves on the cooperative and collegiate relationship we have with the firms using our commentary and precedents daily. We value the feedback that we receive as it helps us to continually improve our publications.

Retirement Villages Amendment Act 2018 NSW – Schedule 1 [10], [17]-[20] commenced

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Commencing 11 February 2019, the Retirement Villages Amendment Act 2018 introduces rules of conduct for operators (Schedule 1 [10]), provides for the sharing of village information and allows for mediation of disputes (Schedule 1[17]-[20]).

Yet to commence are provisions implementing village contract information meetings, asset management plans, the annual auditing of village accounts and the provision of quarterly accounts to the Residents Committee. The commentary will be updated when the main provisions commence.

Conveyancing – amendments in support of eConveyancing – NSW

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Amendments to the Conveyancing Act 1919 and the Real Property Act 1900 by the Conveyancing Legislation Amendment Act 2018, in support of eConveyancing, commenced on 22 November 2018. These amendments address the following key issues concerning electronic conveyancing:

  • Clarifications regarding the application of the Conveyancing Act 1919 and the Real Property Act 1900 to electronic form contracts and electronic signatures – s 6C, 23C (2) and 54A (4);
  • If a sale of land contract is in electronic form then those documents which must be attached to satisfy vendor disclosure obligations may also be in electronic form.
  • Where a registry instrument (dealing, memorandum, caveat or priority notice) is lodged for registration, any other document supporting that instrument may be signed electronically: s 36 (1F) Real Property Act 1900;
  • A client authorisation produced in electronic form may also be electronically signed: s 107 (1A) Real Property Act 1900; and
  • Deeds are now able to be electronically signed and attested – Section 38A of the Conveyancing Act 1919 states that a deed may be created in electronic form and electronically signed and attested in accordance with Part 3. Notably, this includes leases.

The Sale and Purchase Commentaries as well as 1001 Conveyancing Answers within the By Lawyers Conveyancing Guide (NSW), which already cover eConveyancing in detail, have been updated to reflect these changes in support of eConveyancing.

The Commentary within the By Lawyers Leases (NSW) Guide has also been updated.

NSW – Conveyancing – Sale – Replies to requisitions

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Responding to a recent subscriber request, we have added new standard replies for the following Law Society requisitions:

  • Residential Property 2018;
  • Strata Title (Residential) Property 2018;
  • Commercial 2018; and
  • Strata Title (Commercial) Property 2018.

These replies are in our Conveyancing – Sale (NSW) guide and form part of By Lawyers extensive library of replies to requisitions, which comprises replies to all common forms of requisitions including those produced by the Law Society of NSW and Australian Law Stationers.

Note: when using the By Lawyers Contract for Sale of Land requisitions are not required – by operation of clause 11 of the By Lawyers Contract, the warranties given by the vendor in the contract replace requisitions.

The main function of requisitions in modern conveyancing is to remind the vendor of the implied obligation to deliver a good title. But in the vast majority of matters the vendor’s title is completely uncontroversial. For this reason a practice has developed of including requisitions and answers in the contract. In our view the better approach is to raise only requisitions that need to be raised, rather than standard requisitions that are largely irrelevant and receive a standard response.

In a typical conveyancing matter using the By Lawyers contract there should be no need to raise requisitions except where the purchaser’s enquiries reveal a likely defect in title. The vendor warranties implied into all contracts by the Conveyancing (Sale of Land) Regulation 2017 are included as a reminder to vendors and for the information of purchasers.

Combustible cladding ban – Home building warranties

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From 15 August 2018, certain combustible cladding, being any cladding with a core comprised of more than 30% polyethylene, is banned in NSW, with limited exceptions. The state-wide prohibition affects any form of the combustible building material used in external cladding, external walls, external insulation, facades or rendered finishes for certain multi-storey residential and commercial premises. The ban is retrospective and applies to buildings built before 15 August 2018.

The use of such cladding is considered a major defect for the purposes of the home building statutory warranties. This means that owners have a period of up to six years in which legal proceedings can be commence against the builder. There is another six months added to the warranty period if the defect only becomes apparent after five and a half years.

The strata defects bond scheme will continue to operate normally. The introduction of the ban does not stop an owners’ corporation from pursuing a claim under the strata defects bond scheme. An owners’ corporation can use all or part of the bond to pay for the rectification of any defective building work that is identified in a final inspection report, including the use of a banned building product.

The Department of Planning and Environment has released a draft Environmental Planning and Assessment Amendment (Identification of Buildings with Combustible Cladding) Regulation 2017 that will require owners of buildings with combustible external wall cladding to register the building with the government and undertake a fire safety assessment within set deadlines.

The By Lawyers Sale and Purchase commentary and our Reference Guide 1001 Conveyancing Answers (NSW) has been updated to reflect these changes.

Motor vehicle accident – NSW – Calculating interest

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New commentary has been added to the Motor Vehicle Accident (NSW) Guides regarding how to calculate a claim for interest for the period from when the loss to which the damages relate was first incurred, until the date on which the damages are awarded.

The amount of interest is to be calculated in accordance with the principles ordinarily applied by a court for that purpose. The rate of interest is to be three-quarters of the rate prescribed for the purposes of CPA s 101: s 4.16(5) – with the “prescribed rate” being the rate of interest prescribed by reg 36.7 of the UCPR.

Conveyancing NSW – Option to purchase

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The ‘Option to purchase’ precedent in the By Lawyers Conveyancing – Sale Guide for NSW has been updated so that the s 66ZH Notice in relation to cooling off rights is now incorporated in the document rather than needing to be separately provided.

The wording adopted complies with Form 2, Schedule 5 of the Conveyancing (Sale of Land) Regulations 2017.

We are grateful to one of our user firms who suggested this practical amendment. At By Lawyers we love getting feedback from our users! You can always email us at askus@bylawyers.com.au.

Conveyancing – Conveyancers’ Costs Disclosure precedents

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By Lawyers are pleased to announce the addition of Conveyancers’ Costs Disclosure precedents for NSW, VIC, NT, SA and TAS.

These precedents comply with the relevant legislation governing the costs and dispute resolution disclosure requirements for licensed conveyancers.

The Conveyancers Costs Disclosure precedents are now included in the following By Lawyers Guides:

  • Sale of real property
  • Purchase of real property
  • Mortgages
  • Leases

These are important precedents for all licensed conveyancers – if the necessary disclosure is not given before or at the time of the retainer, a client is not required to pay the conveyancer’s costs!

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